Group Companies outside Japan

PT. NIPPON SHOKUBAI INDONESIA

Principal business	Manufacture and sale of acrylic acid, acrylic esters, and superabsorbent polymers

With a strong commitment to maintaining stable and safe operations, we continuously strive to strengthen our emergency preparedness and response system. We have integrated the main emergency response team with shift operation personnel to establish a 24-hour, on-site rapid response system within the plant.
In the third quarter of FY2025, we conducted Phase-1^*1 emergency response drills at the SAP plant area on multiple occasions. These drills were the first emergency drills conducted inside the SAP plant area using the dry dril^*2 method since the SAP plant commenced commercial operation in 2013.
The drill scenario assumed that a blower temperature control failure caused a temperature rise, triggering an HH alarm^*3, and subsequently resulting in a fire on the fifth floor of the SAP plant.
During the drills, shift operation personnel, security staff, and paramedics responded under the direction of the shift operation supervisor.
Through these drills, we identified and evaluated issues and difficulties related to firefighting operations in high-rise structures as well as the rescue of injured persons from elevated locations, with the aim of further enhancing our emergency response capabilities.

1. Phase-1 emergency response drill: An emergency response drill focusing on initial response actions at the site level.
2. Dry drill method: A simulated training exercise conducted without actual firefighting activities.
3. HH alarm (High-High alarm): An alarm that indicates a process parameter has exceeded the high-high setpoint.

SINO-JAPAN CHEMICAL CO., LTD. (Taiwan)

Principal business	Manufacture and sale of surfactant and other chemicals

Our Linyuan Plant received the Occupational Safety and Health Excellent Unit Award organized by the Ministry of Labor in FY2025. This award recognizes the plant’s long-standing efforts in safety culture development improvement, as well as its outstanding achievements in areas such as the work environment, the establishment of a risk management structure, and the maintenance of employee health, all of which were comprehensively assessed.
At our company, we conduct workplace environmental monitoring, task risk assessment, and emergency drills based on assumed accident scenarios on a regular basis, and we strive to ensure safety in both facilities and work processes. In addition, through meticulous on-site inspections as part of routine management, along with internal audit and continuous education and training programs, we are committed to maintaining the physical and mental health of our employees and enhancing our level of occupational safety and health. Through these initiatives, in alignment with the policies of the Nippon Shokubai Group, we are working toward the realization of a safe and secure work environment.
In the selection process for the Occupational Safety and Health Excellent Unit, the evaluation criteria include not only the absence of any serious occupational injuries during the relevant fiscal year and the preceding three years, but also the acquisition of certification under the Taiwan Occupational Safety and Health Management System (TOSHMS) or compliance with the performance assessment of an occupational safety and health management system conducted by the Ministry of Labor. Our fulfillment of these requirements demonstrates that we have been promoting continuous improvement under a well-established management structure and steadily achieving tangible results.
Guided by the Group Mission of “Safety takes priority over production,” we position occupational safety and health as a fundamental pillar of our business activities and will continue our efforts to create a safe and healthy workplace.

SINGAPORE ACRYLIC PTE LTD

Principal business	Manufacture and sale of acrylic acid

Throughout 2025, SMAG^*1 strengthened its commitment to Responsible Care (RC) by focusing on environmental protection, energy efficiency, and meaningful communication with society. Under this approach, SMAG’s Green Committee launched several new initiatives designed to engage all employees within SMAG in sustainable practices.
On January 15, we demonstrated our social responsibility by donating S$10,988 to Gracehaven Children’s Home. This significant amount was raised entirely through voluntary donations from employees and the sale of recyclables.
The annual “ECO Day,” held on March 21, featured a guest lecture on Green Supply Chains, along with the distribution of reusable bags to all employees as part of efforts to reduce single-use plastics.
In September, we held our first “Beach Clean Up Day” event at West Coast Park. Moving away from traditional beach clean-up activities, this event combined fitness with environmental protection, as participating employees collected litter while walking.
In December, an e-waste^*2 collection activity was conducted to ensure proper disposal and reduce environmental impact.
In addition to these individual initiatives, an energy-saving project was implemented throughout 2025 at the Substation and CCR Rackroom. By keeping lights at 50% capacity during normal operating hours, we reduced unnecessary energy consumption and improved process efficiency.
Through these initiatives, SMAG continues to demonstrate its dedication to contributing to a safe and sustainable society.

NIPPON SHOKUBAI AMERICA INDUSTRIES, INC.

Principal business	Manufacture and sale of superabsorbent polymers, polymers for concrete admixture, water soluble polymers, and acrylic emulsions

【Houston facility】

From an environmental protection perspective, the Houston facility focused heavily on sustainability initiatives throughout 2025. As part of these efforts, it has set an ambitious greenhouse gas (GHG) emissions reduction target of more than 40% to be achieved by 2030.
One of the key contributors to these reduction efforts is a project to modify the plant’s drying units. Through this modification, the drying units are now able to meet heat transfer requirements while utilizing lower-pressure steam. As a result, the site can maximize the use of previously underutilized steam and reduce reliance on the natural gas–powered boiler.
In addition, the Houston facility achieved ISCC PLUS certification in 2025, enabling it to supply finished products made using bio-based feedstocks.
As it relates to occupational safety and health, FY2025 was another year in which steady progress was achieved in safety. The Houston facility recorded zero OSHA-recordable accidents or injuries with lost workdays, a result made possible by increased involvement of all employees in safety policies and procedures.
As part of these efforts to strengthen employee involvement, several small modifications were made to the Safety Observation Module, resulting in a 140% increase in total plant observations compared with FY2024. Through this module, employees can identify hazards, upload photos, suggest countermeasures, and document associated work orders within a single digital form. Management then reviews each observation and provides feedback, allowing employees to see how their suggestions are reflected. These efforts have contributed positively to strengthening the site’s safety culture.

【Chattanooga facility】

In 2025, the Chattanooga facility placed a renewed emphasis on Process Safety Management and Environmental Management Programs. The facility implemented a Compliance Calendar to ensure that all aspects of these programs were consistently being met.
The Compliance Calendar allows management to track each specific task and its status, ensuring that all compliance obligations are being met within the required deadlines. The Compliance Calendar is updated periodically and whenever a new safety or environmental management item is identified and created.
FY2025 was a particularly active year, during which we implemented several RC initiatives. Forklift and powered industrial truck training was conducted for all applicable on-site employees, along with hands-on fire extinguisher training, as well as an emergency response drill related to safety measures and inhibitor injection.
We also continued to “Be a Good Citizen, Wherever We Serve” by participating in the Tennessee Chamber of Commerce & Industry.
The Chattanooga facility recognizes the importance of job knowledge and training for future generations. Ensuring that employees possess the skills and expertise necessary for their roles is essential to maintaining safety, efficiency, and accuracy in work tasks. Through initial and refresher training, we strive to promote safe and appropriate behavior consistently and to lead by example for current and future employees. We place safety as the highest priority in everything we do, in order to protect our most valuable assets—our employees.

NISSHOKU CHEMICAL INDUSTRY (ZHANGJIAGANG) CO., LTD. (China)

Principal business	Manufacture and sale of superabsorbent polymers

In FY2025, we conducted emergency response drills twice, in June and November, in collaboration with local fire departments and emergency medical services, with the aim of continuously improving employees’ emergency response capabilities and strengthening their safety awareness.
In the November drill, an emergency command center was established on site for the first time. The command center, led by the President as the overall commander, consisted of the Plant Manager, the General Manager of the Production Department, the General Manager of HSE (Health, Safety and Environment), and the Production Manager, and was responsible for on-site emergency command and control.
The purpose of establishing the command center within the company is to enable rapid response and appropriate command under an organized chain of command in the event of an emergency, thereby minimizing damage and impact.
When an emergency occurs, members of the command center are immediately convened and carry out command and control activities based on their respective roles and responsibilities.
Through the establishment of this command center, on-site instructions can be accurately communicated to each response team, thereby improving the speed and efficiency of the overall emergency response.
Through this drill, operational issues related to the command center were clearly identified. Going forward, we plan to continuously conduct drills to strengthen the functions of the command center and further enhance its operational effectiveness.

NIPPON SHOKUBAI EUROPE N.V. (Belgium)

Principal business	Manufacture and sale of acrylic acid and superabsorbent polymers

In 2025, our company advanced its sustainability ambitions through significant progress in renewable energy sourcing and strategic investments supporting the energy transition. As part of our decarbonization pathway, we concluded a long-term Power Purchase Agreement (PPA) for renewable electricity generated by Belgian offshore wind. This agreement represents a major step toward reducing Scope 2 emissions and contributes directly to the expansion of reliable, locally produced renewable energy infrastructure.
In addition to this milestone, we made a significant co-investment in the Solar Park Hooghe Maey in Antwerp. By supporting this large-scale photovoltaic development, we reinforced our commitment to accelerating the regional availability of renewable electricity and strengthening the broader renewable energy ecosystem. This investment demonstrates our willingness to engage beyond our own operations by contributing to projects that increase solar generation capacity within the port area and the wider Antwerp region.
Together, these initiatives underscore our long-term commitment to responsible energy sourcing, climate resilience, and sustainable growth. They also reflect our determination to contribute meaningfully to Belgium’s transition toward a low-carbon future.